The 10-second takeaway
For the quarter ended Jan. 31 (Q2), IDT missed estimates on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share contracted.
Margins dropped across the board.
IDT booked revenue of $365.4 million. The two analysts polled by S&P Capital IQ predicted net sales of $379.2 million on the same basis. GAAP reported sales were 7.2% higher than the prior-year quarter's $340.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.04. The one earnings estimate compiled by S&P Capital IQ predicted $0.02 per share on the same basis. GAAP EPS of $0.12 for Q2 were 7.7% lower than the prior-year quarter's $0.13 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 16.2%, 90 basis points worse than the prior-year quarter. Operating margin was 1.1%, 90 basis points worse than the prior-year quarter. Net margin was 0.7%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $367.2 million. On the bottom line, the average EPS estimate is -$0.06.
Next year's average estimate for revenue is $1.49 billion. The average EPS estimate is $0.15.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 105 members out of 131 rating the stock outperform, and 26 members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give IDT a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on IDT is buy, with an average price target of $29.50.
Can your portfolio provide you with enough income to last through retirement? You'll need more than IDT. Learn how to maximize your investment income in our free report: "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add IDT to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
Why Denbury Resources, IDT, and Duluth Holdings Slumped Today
On a positive day for the market, these stocks fell. Find out why.
IDT Corporation Gained 20% in April -- But Shares Are Down in 2017
The telecom company had a big month, but that followed a bloodbath in March. Shares are still down double digits this year.
Is IDT's High-Yielding Dividend a Good Investment?
Even though it's officially listed as a telecommunications company, there is more going on under the hood that investors need to be aware of before buying IDT.